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Tata Consultancy Services expects its telecom business to grow slower than the company average this fiscal.
“Telecom as a vertical will grow, but the share of this business (in the overall pie) will come down,” said Mr N Chandrasekaran, Chief Executive Officer and Managing Director of the company.
Even during the quarter gone by, the revenue share of TCS' telecom practice fell to 11 per cent from 11.9 per cent in the previous sequential quarter. Telecom is one of the few verticals globally which has not completely recovered from the economic meltdown of 2008.
Moreover, this is an industry that has seen lot of mergers and acquisition related activity. Recently, AT&T and T-Mobile had announced their intention to merge as part of a $39-billion deal.
Separately, Mr N Chandrasekaran said the company's India-specific unit would contribute between 8 per cent and 10 per cent to overall revenues, going forward..
“It is not that the India business is falling, but there is still volatility. The time required for closing deals is not getting shorter either,” he said.
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